What is the npv of project in worst-case scenario

Assignment Help Financial Management

Reference no: EM132032839

We are evaluating a project that costs $111913, has a seven-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 4193 units per year. Price per unit is $47, variable cost per unit is $27, and fixed costs are $81433 per year. The tax rate is 33 percent, and we require a 8 percent return on this project. Suppose the projections given for price, quantity, variable costs, and fixed costs are all accurate to within +/-12 percent. What is the NPV of the project in worst-case scenario?

Reference no: EM132032839

Questions Cloud

Write the definition of a function ispositive : Write the definition of a function isPositive, that receives an integer parameter and returns true if the parameter is positive, and false otherwise.

What is balance of the accounts receivable control account : The July transactions recorded in the special journals are summarized. What is the balance of the Accounts Receivable control account after the monthly posting

What is the annual ocf for this project : McGilla Golf has decided to sell a new line of golf clubs. What is the annual OCF for this project?

Terminology for an sip server : What's the H.323 terminology for an SIP server (or VoIP server)? Describe two tasks for which an IP phone needs to communicate with an SIP server.

What is the npv of project in worst-case scenario : We are evaluating a project that costs $111913, has a seven-year life, What is the NPV of the project in worst-case scenario?

Discuss about the sustainability of the change effort : The Final Paper is an exploration of a change initiative that you have personally experienced or researched.

Compute the balances in the subsidiary accounts : Bixler Company, balance $4,328; Cuddyer Company, balance $2,775; and Freeze Company. Compute the balances in the subsidiary accounts at the end of the month

Google should have higher return than linkedin : Google should have higher return than LinkedIN because its book to market ratio is higher. Is the above statement correct? Why?

Building highly distributed data environment : What issues should be considered when resolving data requests in a distributed data environment?

User Account

All Pages